What is the basic assumption underlying the model of choice?
The model of choice starts by assuming that people want to make themselves as well off
as possible. In other words, people try to maximize utility.
Economics
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A monopolistic competitor maximizes profit by producing 600 units of output at a price of $24 per unit. If the average cost of production is $18, the monopolistic competitor earns a profit of:
a. $3,600. b. $2,400. c. $6,000. d. $1,800.
Economics
OLED television prices rise by 10 percent, and in response the quantity of those OLED televisions supplied increases by 5 percent. The supply elasticity for OLED television sets in that price range is
A. 2.0. B. 0.5. C. -2.0. D. 1.5.
Economics